Member Article

Carphone Warehouse and Dixons in merger

The boards of prominent high street retailers Dixons and Carphone Warehouse have agreed to merge the two companies in a deal that could generate cost savings of £80 million.

A statement to shareholders in the two firms said the move would create ‘Dixons Carphone plc’ and would see Dixons CEO Sebastian James become overall CEO, while Andrew Harrison, CEO of Carphone, will become Deputy CEO.

The two firms’ shareholders will receive equal holdings in the newly created company, although the deal will require approval from Carphone Warehouse and Dixons shareholders.

Dixons, the owners of Currys and PC World, operates around 700 stores in the UK and northern Europe, while Carphone Warehouse operates around 2,000 across Europe.

The ambition of the two firms is to now develop a seamless multi-channel model where customers will be able to use ‘click & collect’ and ‘pay & collect’ processes.

A statement from Carphone Warehouse suggested the move would lead to “substantial” job creation.

Sir Charles Dunstone, chairman of Carphone said: “We are incredibly excited about the opportunity today’s news brings to our organisations, our consumers and our investors. Both Carphone and Dixons have a huge commitment to delivering the consumer the very best service, product and advice around the connected world.

“We have a deep respect for each other and we see the merger of these two great companies as an opportunity to bring our skills together for the consumer and create a new retailer for the digital age.

“We are also creating jobs and we see many opportunities for further growth. This is a new chapter for both businesses and we are energised and proud to be part of what will be another fantastic journey for consumers and shareholders.”

John Allan, CBE, chairman of Dixons said: “This merger will create a new, world class British retailer for the new digital age, with new opportunities for growth and greater scale and reach. Colleagues of both complementary businesses are experts in their fields, with a shared passion for technology, connectivity and brilliant service.

“Coming together when both companies are flourishing, we will create a stronger business for our customers, colleagues and shareholders - for now and the future.”

This was posted in Bdaily's Members' News section by Tom Keighley .